The main purpose of this study is to provide practicing managers and academic researchers with a framework that will help them to understand better the nature of domestic inter-culture service encounter in multi-ethnic consumer market. The first objective is to identify determinants of satisfaction and dissatisfaction service encounter in a multi-ethnic consumers market. Second, the study intends to investigate the influence of ethnicities on service expectations. Third, the study examines the role of similar-dissimilar ethnicities that occur during domestic inter-culture service encounter on consumers’ satisfaction and dissatisfaction evaluations.
Data were collected using respondents from Malaysia. The study interviewed 306 ethnic Malaysia Malays and Chinese respondents using critical incident technique. The study respondents provided credible 612 critical incidents. Based on content analysis and inter-judge reliability, seven sub-categories (grouped within three major categories) emerge as integral determinant during domestic inter-culture service encounters.
The results identify seven determinants, listed in order of frequency, include professionalism, communication, and sense of assurance, service attention, essence of time, articulation and adaptation, servicescape, behavioral dispositions, and handling consumer task as critical service expectations. The results conclude that different service expectations exist between differing ethnic affiliations. The findings further suggest ethnicities similarity and dissimilarity between consumer and service provider influences the evaluation of domestic inter-culture service encounter. Consumers were more satisfied with similar others during service encounters. On the contrary, more dissatisfactory incidents were reported when both parties in service exchange are not from similar ethnic affiliation.
The identified determinants and associated findings from present study provide practical insights for practising managers into how different ethnic consumers are likely to respond to domestic inter-culture service encounter. Domestic service firms should try to capitalise these findings, by designing appropriate service marketing strategies, as this would effectively lead to increase consumer satisfaction and competitive advantage. The results also demand for special practical implications on service organisation’s staffing policy and training procedure. The value of this study contributes by offering better understanding on determinants of service expectations and the domestic inter-culture service encounter in Malaysia multi-ethnic market, which has received little attention despite the prevalence of inter-culture interaction.

Asma, A. (1992). The influence of ethnic values on managerial practices in Malaysia. Malaysian Management Review, 27(1), 3-18.
Barker, S., & Hartel, C. E. J. (2004). Intercultural service encounters: An exploratory study of customer experiences. Cross Cultural Management, 11(1), 3-14.
Bazeley, P. (2007). Qualitative data analysis with NVivo. London EC1Y 1SP: Sage Publications Inc.
Berry, L. L., Zeithaml, V. A., & Parasuraman, A. (1985). Quality counts in service, too. Business Horizons, 28(3), 44-52.
Bianchi, C. (2001). The effect of cultural differences on service encounter satisfaction. Paper presented at the 2001 AMA Winter Educator's Conference, Scottsdale, Arizona.
Bitner, M. J. (1990). Evaluating service encounters: The effects of physical surroundings and employee responses. The Journal of Marketing, 54(2), 69-82.
Bitner, M. J. (1992). Servicescapes: The impact of physical surroundings on customers and employee. Journal of Marketing, 56(2), 57-71.
Bitner, M. J., Booms, B. H., & Tetreault, M. S. (1990). The service encounter: Diagnosing favorable and unfavorable incidents. Journal of Marketing, 54(1), 71-84.
Bitner, M. J., Brown, S. W., & Meuter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28(1), 138-149.
Burton, D. (2000). Ethnicity, identity and marketing: A critical review. Journal of Marketing Management, 16(8), 853-877.
Burton, D. (2002). Incorporating ethnicity into marketing intelligence and planning. Marketing Intelligence & Planning, 20(7), 442-451.
Chell, E. (2004). Critical incident technique. In C. Cassell & G. Symon (Eds.), Essential guide to qualitative methods in organizational research. London: Sage Publications Ltd.
Churchill, G. A. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64-73.
Craig, C. S., & Douglas, S. P. (2006). Beyond national culture: Implications of cultural dynamics for consumer research. International Marketing Review, 23(3), 322-342.
Craig, C. S., & Douglas, S. P. (2010). Assessing cross-cultural marketing theory and research: A commentary essay. Journal of Business Research, 64(6), 625-627.
Cui, G. (1997). Marketing strategies in a multi-ethnic environment. Journal of Marketing Theory and Practice, 5(1), 122-134.
Douglas, J. A., McClelland, R., Davies, J., & Sudbury, L. (2009). Using critical incident technique (CIT) to capture the voice of the student. The TQM Journal, 21(4), 305-318.
Douglas, S. P., & Craig, C. S. (1997). The changing dynamic of consumer behavior: Implications for cross-cultural research. International Journal of Research in Marketing, 14(4), 379-395.
Edvardsson, B., & Roos, I. (2001). Critical incident techniques: Towards a framework for analysing the criticality of critical incidents. International Journal of Service Industry Management, 12(3), 251-268.
Engelen, A., & Brettel, M. (2010). Assessing cross-cultural marketing theory and research. Journal of Business Research, 64(5), 516-523.
Etgar, M., & Fuchs, G. (2011). Does ethnic/cultural dissmilarity affect perceptions of service quality? Services Marketing Quarterly, 32(2), 113-128.
Flanagan, J. C. (1954). The critical incident technique. Psychological Bulletin, 51(4), 327-358.
Furrer, O., Liu, B. S. C., & Sudharshan, D. (2000). The relationships between culture and service quality perceptions: Basis for cross-cultural market segmentation and resource allocation. Journal of Service Research, 2(4), 355-377.
Grayson, K., & Rust, R. (2001). Interrater reliability. Journal of Consumer Psychology, 10(1&2), 71-73.
Gremler, D. D. (2004). The critical incident technique in service research. Journal of Service Research, 7(1), 65-89.
Gremler, D. D., Bitner, M. J., & Evans, K. R. (1994). The internal service encounter. International Journal of Service Industry Management, 5(2), 34-56.
Hall, D., & Hall, I. M. (1996). Practical social research: Project work in the community. London: Macmillan.
Hirschman, C. (1987). The meaning and measurement of ethnicity in Malaysia: An analysis of census classifications. Journal of Asian Studies, 46(3), 555-582.
Hoffman, K. D., Kelley, S. W., & Chung, B. C. (2003). A CIT investigation of serviscape failures and associated recovery strategies. Journal of Services Marketing, 17(4), 322-340.
Hofstede, G. (1991). Cultures and organizations: Software of the mind. London: McGraw-Hill.
Holloway, B. B., & Beatty, S. E. (2008). Satisfiers and dissatisfiers in the online environment. Journal of Service Research, 10(4), 347-364.
Holmqvist, J. (2011). Consumer language preferences in service encounters: A cross-cultural perspective. Managing Service Quality, 21(2), 178-191.
Holmqvist, J., & Gronroos, C. (2012). How does language matter for service? Challenges and propositions for service research. Journal of Service Research, 15(4), 1-13.
Hopkins, S. A., Hopkins, W. E., & Hoffman, K. D. (2005). Domestic inter-cultural service encounters: An integrated model. Managing Service Quality, 15(4), 329-343.
Hughes, H., Williamson, K., & Lloyd, A. (2007). Critical incident technique. In S. Lipu (Ed.), Exploring method in information literacy research: Topics in Australasian library and information studies (pp. 49-66). Wagga Wagga: Centre for Information Studies, Charles Stuart University.
Imrie, B. C., Cadogan, J. W., & McNaughton, R. (2002). The service quality construct on a global stage. Managing Service Quality, 12(1), 10-18.
Jamal, A. (2003). Marketing in the multicultural world: The interplay of marketing, ethnicity and consumption. European Journal of Marketing, 37(11/12), 1599-1620.
Jeng, D. J. F., & Kuo, S. F. W. (2012). Internal service quality within the different Chinese subcultures: A comparison between Taiwan, China, and Singapore. Service Business, 6(4), 425-458.
Johnston, R. (1995). The determinants of service quality: Satisfiers and dissatisfiers. [Research]. Journal of Service Industry Management, 6(5), 53-71.
Kassim, N. M., & Bojei, J. (2002). Service quality: Gaps in the Malaysian telemarketing industry. Journal of Business Research, 55(10), 845-852.
Keaveney, S. M. (1995). Customer switching behavior in service industries: An exploratory study. Journal of Marketing, 59(2), 71-82.
Kueh, K., & Voon, B. H. (2007). Culture and service quality expectations: Evidence from generation Y consumers in Malaysia. [Research Paper]. Managing Service Quality, 17(6), 656-680.
Leung, K., & Bond, M. H. (1989). On the empirical identification of dimensions for cross-cultural comparisons. Journal of Cross-Cultural Psychology, 20(2), 133-151.
Lia, C. B., Othman, M., Chern, B. H., Karim, M. S., & Ramachandran, S. (2008). Using critical incident technique to identify the effect of servicescape failure and the effectiveness of recovery strategy on dining experience. Paper presented at the Asian Forum on Business Education, Kuala Lumpur.
Loh, J. (2012, June 25, 2012). Services sector makes up 89% of companies. The Star, p. 5.
Lopez, J., Hart, L. K., & Rampersad, A. (2007). Ethnicity and customer satisfaction in the financial services sector. Managing Service Quality, 17(3), 259-274.
Mangold, W. G., Miller, F., & Brockway, G. R. (1999). Word-of-mouth communication in the service marketplace. The Journal of Service Marketing, 13(1), 73-89.
Mattila, A. S. (1999). The role of culture in the service evaluation process. [Research Paper]. Journal of Service Research, 1(3), 250-261.
Mattila, A. S., & Patterson, P. G. (2004). Service recovery and fairness perceptions in collectivist and individualist contexts. Journal of Service Research, 6(4), 336-346.
Miller, J. L., Craighead, C. W., & Karwan, K. R. (2000). Service recovery: A framework and empirical investigation. Journal of Operation Management, 18(4), 387-400.
Muthusamy, P. (2010). Codeswitching in communication: A sociolinguistic study of Malaysian secondary school students. Pertanika Journal of Social Science & Humanities, 18(2), 407-415.
Nagata, J. A. (1974). What is a Malay? Situational selection of ethnic identity in a plural society. American Etnologist, 1(2), 331-350.
Nwankwo, S., & Lindridge, A. (1998). Marketing to ethnic minorities in Britain. Journal of Marketing Practice: Applied Marketing Science, 4(7), 200-216.
Parasuraman, A., & Berry, L. L. (1993). More on improving service quality measurement. Journal of Retailing, 69(1), 140-147.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50.
Paswan, A. K., & Ganesha, G. (2005). Cross-cultural interaction comfort and service evaluation. Journal of International Consumer Marketing, 18(1-2), 93-115.
Patterson, P. G., & Smith, T. (2001). Relationship benefits in service industries: A replication in Southeast Asian context. Journal of Services Marketing, 15(6), 425-443.
Perreault, W. D., & Leigh, L. E. (1989). Reliability of nominal data based on qualitative judgments. Journal of Marketing Research, 26(2), 135-148.
Phinney, J. S. (1990). Ethnic identity in adolescents and adults: Review of research. Psychological Bulletin, 108(3), 499-514.
Pires, G., & Stanton, J. (2000a). Ethnicity and acculturation in a culturally diverse country: Identidying ethnic markets. Journal of Multilingual and Multicultural Development, 21(1), 42-57.
Pires, G., & Stanton, J. (2000b). Marketing services to ethnic consumers in culturally diverse markets: Issues and implications. Journal of Service Marketing, 14(7), 607-618.
Rajpoot, N. (2004). Reconceptualizing service encounter quality in a non-Western context. Journal of Service Research, 7(2), 181-201.
Raval, B., & Raval, D. (2006). Psycho-cultural profile of Asian immigrants: Implications for marketing initiatives. In C. P. Rao (Ed.), Marketing and multicultural diversity (pp. 169-178). Hamsphire: Ashgate.
Robson, C. (1993). Real world research: A resource for social scientists and practitioner-researchers. Oxford: Wiley-Blackwell.
Roos, I. (2002). Methods of investigating critical incidents. Journal of Service Research, 4(3), 193-204.
Saunders, M., Lewis, P., & Thornhill, A. (2007). Research methods for business students (4th ed.). Tottenham Court Road, London: Prentice Hall.
Sharma, P., Tam, J. L. M., & Kim, N. (2009). Demystifying intercultural service encounters: Towards a comprehensive conceptual framework. Journal of Service Research, 12(2), 227-242.
Sharma, P., Tam, J. L. M., & Kim, N. (2012). Intercultural service encounters (ICSE): An extended framework and empirical validation. Journal of Service Marketing, 26(7), 521-534.
Shostack, G. L. (1985). Planning the service encounter. In J. A. Czepiel, M. R. Solomon & C. F. Suprenant (Eds.), The service encounter (pp. 243-254). New York, NY: Lexington Book.
Singh, N., Kwon, I.-W., & Pereira, A. (2003). Cross-cultural consumer socialization: An exploratory study of socialization influences across three ethnic groups. Psychology & Marketing, 20(10), 867-881.
Sizoo, S., Plank, R., Iskat, W., & Serrie, H. (2005). The effect of intercultural sensitivity on employee performance in cross-cultural service encounters. [Research Paper]. Journal of Service Marketing, 19(4), 245-255.
Smith, A. M., & Reynolds, N. L. (2001). Measuring cross-cultural service quality: A framework for assessment. International Marketing Review, 19(5), 450-481.
Snow, K., Bartel, H., & Cullen, T. (1996). How ethnicity influence service expectations: A Canadian perspective. Managing Service Quality, 6(6), 33-37.
Solomon, M. R., Surprenant, C., Czepiel, J. A., & Gutman, E. G. (1985). A role theory perspective on dyadic interactions: The service encounter. Journal of Marketing, 49(1), 99-111.
Stanworth, J. O., Edvardsson, B., & Hsu, R. S. W. (2011). Internal service: Drivers of (dis)satisfation in the Chinese context. Paper presented at the International Joint Conference on Service Sciences, Taipei, Taiwan.
Stauss, B., & Mang, P. (1999). "Culture shocks" in inter-cultural service encounters? Journal of Service Marketing, 13(4/5), 329-346.
Stauss, B., & Weinlich, B. (1997). Process-oriented measurement of service quality: Applying the sequential incident technique. European Journal of Marketing, 31(1), 33-55.
Stets, J. E., & Burke, P. J. (2000). Identity theory and social identity theory. Social Psychology Quarterly, 63(3), 224-237.
Straub, D., Loch, K., Evaristo, R., Karahana, E., & Strite, M. (2002). Toward a theory-based measurement of culture. Journal of Global Information Management, 10(1), 13-23.
Strauss, A. L., & Corbin, J. M. (1998). Basics of qualitative research: Techniques and procedures for developing grounded theory. Thousand Oaks: Sage Publications.
Surprenant, C. F., & Solomon, M. R. (1987). Predictability and personalization in the service encounter. Journal of Marketing, 51(2), 86-96.
Tajfel, H. (1982). Social psychology of intergroup relations. Annual Review of Psychology, 33(1), 1-39.
Tajfel, H., & Turner, J. (1979). An integrative theory of inter-group conflict. In W. G. Austin & S. Worchel (Eds.), The social psychology of inter-group relations (pp. 33-47). Monterey, CA: Brooks/Cole Co.
Ueltschy, L. C., Laroche, M., Zhang, M., Cho, H., & Yingwei, R. (2009). Is there really an Asian connection? Professional service quality perceptions and customer satiafaction. Journal of Business Research, 62(10), 972-979.
Wallendorf, M., & Belk, R. W. (1989). Assessing trustworthiness in naturalistic consumer research. In E. C. Hirschman (Ed.), Interpretive Consumer Research (pp. 69-84). Provo: Association for Consumer Research.
Wang, C. Y., & Matilla, A. S. (2010). A grounded theory model of service providers' stress, emotion, and coping during intercultural service encounters. Managing Service Quality, 20(4), 328-342.
Wang, K. C., Hsieh, A. T., & Huan, T. C. (2000). Critical service features in group package tour: An exploratory research. Tourism Management, 21(2), 177-189.
Warden, C. A., Liu, T. C., Huang, C. T., & Lee, C. H. (2003). Service failures away from home: Benefits in intercultural service encounters. International Journal of Service Industry Management, 14(4), 436-457.
Weiner, B. (1985). An attributional theory of achievement motivation and emotion. Psychological Review, 92(4), 548-573.
Winsted, K. F. (1997). The service experience in two cultures: A behavioral perspective. Journal of Retailing, 73(3), 337-360.
Wu, L., & Mattila, A. (2012). Investigating consumer embarrassment in service interactions. International Journal of Hospitality Management, In Press, Corrected Proof.
Zeithaml, V. A. (1998). Consumer perceptions of price, quality, and value: A means end model synthesis of evidence. Journal of Marketing, 52(3), 2-22.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1993). The nature and determinants of customer expectations of service. Journal of the Academy of Marketing Science, 21(1), 1-12.
Zhang, J., Beatty, S. E., & Mothersbaugh, D. (2010). A CIT investigation of other customers' influence in services. Journal of Service Marketing, 24(5), 389-399.
Zhang, J., Beatty, S. E., & Walsh, G. (2008). Review and future directions of cross-cultural consumer services research. Journal of Business Research, 61(3), 211-224.